Top Posters
Since Sunday
41
38
22
13
9
9
9
8
8
8
8
8
New Topic  
wrote...
Posts: 174
2 months ago
Describe the main factors economists believe cause inequality of income.
Source  Download
Microeconomics
Edition: 7th
Authors:
Read 14 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 158
2 months ago
Sign in or Sign up in seconds to unlock everything.
The distribution of income is based mainly on the marginal revenue product of the factors owned by households, according to the marginal productivity theory of income distribution. Therefore, the causes of income inequality are very complex. Income inequality is determined by the quantities of factors owned by households (including labor, capital, and natural resources) and the prices of these factors of production (which are determined by the interaction of demand and supply). Income inequality is believed to have risen in the past three decades because the wage rates earned at the top end of the income distribution have risen in comparison to those at the bottom end, largely because of the effects of technological change and the globalization of markets. Government policies, especially those dealing with taxes and transfers, also have an effect on income inequality.
This verified answer contains over 130 words.
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  161 People Browsing
Related Images
 96
 31
 25

▶️ Video: Dendrite Animation

For a complete list of videos, visit our video library